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By D. E. Kraushaar

Ruhrkohle in West Germany evaluates and compares the net present values of long-term periods from its coal mines by a computer assisted long-term planning system. Two main parts of this system are computer programs for the prediction of: (a) mineable reserves and their distribution in longwall panels as a function of dependent geological variables; (b) daily outputs and costs of longwall panels as a function of dependent geo- logical, layout and operational variables. This paper describes the investigations, which ended in the above computer programs: ? the collection of information from past workings and their organization in databases; ? the statistical evaluation of the databases, and ? the resulting correlation formulas. The correlation formulas vary the mean dependent variables as a function of independent variables which can be indicated with high reliability for planning projects in the long run. The system thus serves the purpose of facilitating long-term planning and excluding biased individual judgement of local planning staffs.

Jan 1, 1987

The University of New South Wales (UNSW Australia) has been a world leader in the development of innovative virtual reality technologies over the last 15 years. AVIE (Advanced Visualisation and Interactive Environment) was developed by iCinema as a collaborative venture between UNSW?s Faculties of Engineering and the College of Fine Arts. This is the world?s first 360°-surround, virtual reality (VR) stereo projection theatre system. The School of Mining Engineering at UNSW Australia has developed 18 different virtual reality modules aimed at mine safety training and mining engineering education. These modules are being regularly used in both the mining industry and the university. The School of Mining Engineering is continuously involved in the development of different modules. Research is also currently being conducted on the implementation of other technologies into this environment. Artificial intelligence (AI) and fuzzy logic are tools that the authors would like to consider implementing in future module development. This paper will review current research in both these areas and consider options for applying these technologies.

Jan 1, 2014

By C. Tan, C. Detournay

Wellbore stability is a major concern for drilling in naturally fractured formations. The infiltration of drilling mud into the fractures is a factor, which may compromise wellbore integrity due to the loss of strength experienced by the fractures. The reduction in the fracture frictional and cohesive properties is attributed to weakening of the infill materials and lubrication of fracture asperities by the mud filtrate. One way to investigate the influence of mud infiltration on wellbore stability in fractured formations is to use a numerical modeling approach. A requirement for the numerical model is the ability to predict the region of mud infiltration. This paper describes a numerical technique to model the extent of mud infiltration for application in coupled fluid-mechanical simulations in densely fractured rock masses using the computer code, UDEC. Several factors are considered including fracture pattern, in-situ stresses, reduction in joint frictional angle and cohesion, viscosity of the mud filtrate and fracture plugging. Results of numerical simulations are presented to illustrate the technique and show the influence of these factors on the extent of mud infiltration. Un des problèmes importants posés par le forage en milieu fissuré saturé, est celui du maintient de la stabilité du puit. L’infiltration de boue de forage dans le massif peut avoir pour effet de réduire les propriétés frictionnelles et cohésives des fractures et de compromettre ainsi la stabilité du puit de forage. Le radoucissement des propriétés des fractures est attribué à la dégradation du materiau de remplissage et au pouvoir lubrifiant des boues. L’analyse numérique offre un moyen d’investiguer l’influence jouée par l’infiltration de boue sur la stabilité du puit. Un des critères de sélection du modèle numérique sera son pouvoir de prédiction du domaine d’infiltration de boue. Cet article décrit une technique numérique permettant de modéliser l’infiltration de boue de forage dans le cadre de simulations hydro-mécaniques, en milieu à haute densité de fractures, effectuées avec le logiciel de calcul UDEC. Parmis les facteurs tenus en compte, on trouvera la nature du réseau de fractures, les contraintes in-situ, le radoucissement en friction et cohésion des joints, la viscosité de la boue et le bourrage des fractures. Des résultats de simulations sont présentés pour illustrer la technique et montrer l’influence de ces facteurs sur la taille du domaine d’infiltration de boue. Bohrlochstabilität ist ein wichtiger Aspekt für das Bohren in geklüfteten Gebirgsformationen. Das Eindringen der Bohrlochstützflüssigkeit in die Klüfte kann die Bohrlochintegrität wegen des Verlustes der Festigkeit des Kluftsystems gefährden. Die Reduktion der Reibung und kohäsiven Eigenschaften ist der Schwächung der Kluftfüllung und der Schmierwirkung der eingerungenen Stützflüssigkeit in Bezug auf die Kluft-Asperities geschuldet. Numerische Berechnungen sind ein Weg zur Untersuchung des Einflusses der Infiltration der Bohrlochstützflüssigkeit auf die Bohrlochstabilität in geklüfteten Gebirgsformationen. Eine Voraussetzung für numerische Modelle ist die Fähigkeit den Bereich der Infiltration der Stützflüssigkeit zu prognostizieren. Diese Publikation beschreibt ein numerisches Verfahren, um die Reichweite der Infiltration von Stützflüssigkeiten mittels fluid-mechanisch gekoppelter Simulationen im engständig geklüfteten Gebirge mit dem Programm UDEC zu modellieren. Verschiedene Faktoren, wie Kluftmuster, Gebirgsspannungszustand, Reduktion von Kluftreibungswinkel- und kohäsion, Viskosität der Stützflüssigkeit und Rissabdichtung wurden untersucht. Ergebnisse numerischer Simulationen werden präsentiert, um die Vorgehensweise zu illu

Jan 1, 2003

By W. A. Gericke, B. Olmstead, I. Mc Dougall, C. F. R. Smith

A finite element model was generated of a Søderberg electrode in a ferromanganese smelter. In this model, the casing and fins were modelled explicitly, and temperature-dependent material properties were included. A two-stage analysis procedure was used, the first part being a coupled thermal-electrical analysis using an applied DC current. As the casing material was non-magnetic, the DC current was deemed sufficiently accurate for this initial analysis. The proximity effect was not considered. Thermal boundary conditions based on assumed temperature distributions in the furnace were applied. Calculated temperatures agreed well with measured values. The joule heat calculated in this step was applied as a load to a coupled thermalstress analysis. The model was applied to a comparative study of alternative materials for the casing and fins. A number of different combinations of materials for the casing and fins were evaluated in a comparative study. The position of the baking zone was used as the criterion for evaluating the potential of each material combination. Based on this analysis, some material combinations were discarded as being entirely unsuitable, whilst the two most suitable combinations will be tested experimentally in the furnace. The stress analysis was performed on the most suitable option. The practical advantage of this analysis was that a number of what-if scenarios could be evaluated and discarded prior to embarking on expensive experimental work, thus limiting the amount of experimental effort required. A mathematical model allows for the comparison of options under controlled conditions, where parameters of interest can be varied individually, with all other parameters remaining the same, a condition which is difficult to achieve in an operating furnace.

Jan 1, 2004

By D. S. van Vuuren

Industrial production of titanium occurs via the batch-wise reduction of titanium tetrachloride (TiCl4) with a reducing metal, being magnesium in the Kroll process, or sodium in the Hunter process. In the search for low cost titanium, the CSIR is developing a continuous process to produce titanium powder directly via metallothermic reduction of TiCl4 in molten salt, dubbed the CSIR-Ti process. The move to a continuous process has been attempted by a number of organizations, but was until now always met with failure, due in no small part to challenges inherent in the process chemistry. The reaction between TiCl4 and the reducing metal can occur directly, when TiCl4 or any titanium sub-chlorides present, comes into contact with suspended or dissolved reducing metal. The reaction can also occur indirectly, without any physical contact between the reacting species, via an electronically mediated mechanism. The reaction mechanism via electronic mediation can cause TiCl4 to react at the outlet of the feed port, rapidly causing blockages of the TiCl4 feed line. The electrical conductivity of the metal reactor can also cause the electronically mediated reaction to favour the formation of titanium sponge on the reactor walls and internals, rather than titanium powder. Various methods were investigated to overcome the problem of blockages in the TiCl4 feed line, e.g. mechanical removal, sonic velocities, dilution of the TiCl4 and the use of ceramic feed lines. This article discusses problems experienced with the continuous feeding of reagents, and various methods attempted are shown and discussed. Information is also given on the morphology, chemical composition and suitability of the final titanium powder for powder metallurgical application as presently produced by the CSIR-Ti process. Keywords Titanium dioxide, titanium nitride, carbo-thermic reduction, ilmenite, slag, tunnel kiln, residence time.

Jan 1, 2011

By N. J. Alderman, D. J. Clowes, N. I. Heywood

The effects were studied of the presence of comminuted flint on the rheological characteristics of chalk slurry pumped through a 92-km long pipeline from Kensworth Quarry to Rugby Cement Works in the UK, and their impact on the pipe flow conditions. Flow curves were measured for 63different chalk slurry samples; these were described by the Bingham plastic model. In addition to observing trends in the yield stress parameter and plastic viscosity in the model with variations in both flint concentration and dispersant additive, use was also made of slurry viscosity values at a reference shear rate of 60 s-1for the pipe flow. It was found that chalk slurry viscosity decreases with increasing flint content up to 10% by weight for a given additive concentration, and increases with increasing additive concentration from 0.7 to 1.0%, for a given flint content. The pipeline flow regimes were identified using the critical value of the Bingham Reynolds number for laminar flow breakdown. For Bench 11 (quarry bottom) chalk slurries, it was observed that all sections of the pipeline operate in the turbulent flow regime for the nine different formulations and for the three pipe diameters used along the pipeline. However, this was not always the case for Bench 1(quarry top) slurries. It was therefore recommended that chalk slurries prepared from Bench 1 should not be used because of the strong likelihood that laminar flow conditions will occur owing to the presence of higher clay concentrations within this bench. This, in turn, will lead to an unsafe operation of the pipeline because of the potential for coarse particle settling. Likewise, blending of chalk from Bench 1 with the lower benches such as Bench 11 could be problematic and this requires further experimentation.

Jan 1, 2007

By I. A. Mutemererwa

This paper investigates the role of vertical integration between chrome ore mines and ferrochromium smelters in the location of ferrochromium production capacity in South Africa and Zimbabwe. Vertical integration is important in understanding the increasing competitive position of these two countries as observations show that an increasingly larger share of the global market has been coming from integrated producers. The paper argues that the increased vertical integration between mines and smelters in South Africa and Zimbabwe has led to a lower cost of chrome ore as an input compared with other producers. Underlying this hypothesis is the basic tenet that, more likely than not, production will take place where the costs are lowest. The paper concentrates on high carbon ferrochromium (HCFC) production in market economy countries (MEC). Using an ordinary least squares model, the study tests the relationship between low chrome ore costs and vertical integration shows a statistically significant relationship. These findings partially support the view that the control of sources of chrome ore is a major source of competitiveness. Keywords: competitiveness, ferrochromium (ferrochrome), ordinary least squares, dummy variables, vertical integration, southern Africa.

Jan 1, 2000

By R. G. Cawthorn

The earliest authenticated scientific report of the occurrence of platinum in rocks from the Bushveld Complex appears to be by William Bettel on 10 November 1906. Thereafter, prospecting of the chromite-rich rocks for platinum proved frustrating. I suggest that the resurgence of interest shown by Dr Hans Merensky in 1924 resulted from his realization that newly panned platinum had a different grain size from that in the chromite layers and indicated a different source rock, which he located, and it became known as the Merensky Reef.

Jan 1, 2007

By Janet M. Epps

The international climate regulating environmental management in mining is rapidly evolving through the combined influences of the development of international guidelines, resolutions, protocols, treaties and conventions; the influences of the international lending and aid institutions who seek a consistent but constantly evolving standard of environmental performance from their clients; the legal precedents being developed in courts al over the world; and the activities of multinational countries who tend to rapidly upgrade technological performance through their international activities (particularly influencing developing countries). In this rapidly evolving regulatory environment, the more 'models' available to this international pool of resource materials that demonstrate practical. cost-effective and (most desirably) incentive based regulatory mechanisms, the better will be the eventual body of 'international standards' we will al have to work with. Australia can make a significant contribution to this process, however, it has only been on the margin of this dynamic, North American and European led process, up to this time. It is in the Australian minerals and energy industry's best interest to take an active part in the evolution and direction of this process.

Jan 1, 1996

By V. Labiouse, R. Gärber

The paper aims at clarifying the up-to-now misappreciated role taken by pore water on the design of deep tunnels in saturated porous media. Numerical simulations with a non-dimensional FEM-model emphasise the influence of pore water characteristics (in situ pressure and compressibility) and boundary conditions (lining permeability) on the short and long term underground-structure equilibrium states. These results cannot be achieved by means of monophasic total stress analyses. Dieser Beitrag untersucht den Einfluss des Porenwassers auf die Dimensionierung von tiefen Tunnelbauwerken in wassergesättigtem Untergrund. Numerische Simulationen mittels eines dimensionslosen FEM-Modells betonen den Einfluss der Porenwassereigenschaften (in-situ Druck und Kompressibilität) und der hydraulischen Randbedingungen (Tunnelausbaudurchlässigkeit) auf Kurz- und Langzeitverhalten des Untergrund-Ausbau Gleichgewichts. Diese Ergebnisse können nicht ermittelt werden anhand von Einphasen- und Totalspannungsmodellen. L’article s’intéresse au rôle méconnu de l’eau interstitielle dans le dimensionnement de tunnels profonds creusés dans des milieux poreux saturés. Des calculs adimensionnels par éléments finis soulignent l’influence des caractéristiques de l’eau interstitielle (pression in situ et compressibilité) ainsi que des conditions aux frontières (perméabilité du revêtement) sur les équilibres court et long terme de l’ouvrage. Ces résultats ne peuvent pas être obtenus par des calculs en contraintes totales.

Jan 1, 2003

By R. G. Cawthorn

The earliest authenticated scientific report of the occurrence of platinum in rocks from the Bushveld Complex appears to be by William Bettel on 10th November 1906. Thereafter, prospecting of the chromite-rich rocks for platinum proved frustrating. I suggest that the resurgence of interest shown by Dr Hans Merensky in 1924 resulted from his realization that newly-panned platinum had a different grain size from that in the chromite layers and indicated a different source rock, which he located and it became known as the Merensky Reef.

Jan 1, 2006

By C. Steve

ABSTRACT: In this paper, the stability evaluation and bifurcation criteria are presented for the Jinping arch dam structure. The bifurcation models in failure status of the arch dam are derived from the uniqueness of the controlling equation of dam behaviours, and the relative phenomena between positive definition of dam structural tangent stiffness and bifurcation are given in the paper. Then the structural collapse criteria for arch dam are discussed based on the energy mode. A stability criterion of dam based on the connection of yield zones is proposed according to the implementation of elasto-plastic FEM (finite element method) numerical analysis. In accordance with this judging method, nonlinear FEM analysis is used for Jinping arch dam. The failure process of the Jinping dam was simulated and yield zones were found under the overloading condition. Keywords: Stability evaluation, bifurcation, failure process, Jinping arch dam ZUSAMMENFASSUNG: In der Verliegenden Arbeit wird ein integrater geomechanisch Modellversuch fuer Jinping Bogenstaumauer Vorgesstellt. Die Bogenstaumauer liegt aut der komplizerten felsformationen. Der Zerstoerungsmechanismus, die Stabilitaetsfaktoren und die Interaktion zwischen der Bogenstaumauer und den Seiltichen. In der Vorliegenden Arbeit wird eine dreidimensionale finite element analyse fuer die seitlichen. Gestein sauflager mittels dem Bruchmodell Vorgestellt, da fuer Jiniping Bogenstaumauer angewandet wird. Ein Bruch mechanismus model einschliesslich der statistischen parameter der Gesteinfes tigkeit wird entauckeit. RÉSUMÉ: Das ce documènt a été faite une analyse d’elemt limité de trois dimensions dn fondement de construction de roche faisant appel au modéle de l’endommagemnet à fracture, analyse appliquée an fondement du bar ragevoute de Jinping. Ce documènt décrit le test de modéle géomecanique intégral pour le barrage-voûte de Jinping L’ampleur du modéle en question constitute l’une de plus importantes en China. Ils correspondent par faitement anx calculs des résultats.

Jan 1, 2003

By D. T. Walton

In a former Spotlight articlet, Dr P. J. D. Lloyd focused attention on the shortage of locally trained mining and metallurgical graduates, and indicated that the South African Institute of Mining and Metallurgy (SAIMM) has been exerting pressure to boost the intake of undergraduates in mineral disciplines. This article reviews the recruiting activities of the South African minerals industry over the past decade, and discusses some of the programmes that are in operation at the moment, particularly those aimed at potential graduates.

Jan 1, 1980

By B. Tiryaki

Performance prediction models for partial face mechanical excavators, when developed in laboratory conditions, depend on relating the results of a set of rock property tests and indices to specific cutting energy (SE) for various rock types. There exist some studies in the literature aiming to correlate the geotechnical properties of intact rocks with the SE, especially for massive and widely jointed rock environments. However, those including direct and/or indirect measures of rock fracture parameters such as rock brittleness and fracture toughness, along with the other rock parameters expressing different aspects of rock behavior under drag tools (picks), are rather limited. With this study, it was aimed to investigate the relationships between the indirect measures of rock brittleness and fracture toughness and the SE depending on the results of a new and two previous linear rock cutting programmes. Relationships between the SE, rock strength parameters, and the rock index tests have also been investigated in this study. Sandstone samples taken from the different fields around Ankara, Turkey were used in the new testing programme. Detailed mineralogical analyses, petrographic studies, and rock mechanics and rock cutting tests were performed on these selected sandstone specimens. The assessment of rock cuttability was based on the SE. Three different brittleness indices (B1, B2, andB4) were calculated for sandstones samples, whereas a toughness index (Ti), being developed by Atkinson et al.1, was employed to represent the indirect rock fracture toughness. The relationships between the SE and the large amounts of new data obtained from the mineralogical analyses, petrographic studies, rock mechanics, and linear rock cutting tests were evaluated by using bivariate correlation and curve fitting techniques, variance analysis, and Student?s t-test. Rock cutting and rock property testing data that came from well-known studies of McFeat-Smith and Fowell2andRoxborough and Philips3have also been employed in statistical analyses together with the new data. Laboratory tests and subsequent analyses revealed that there were close correlations between the SE and B4 whereas no statistically significant correlation has been found between the SE and Ti. Uniaxial compressive and Brazilian tensile strengths and Shore scleroscope hardness of sandstones also exhibited strong relationships with the SE. NCB cone indenter test had the greatest influence on the SE among the other engineering properties of rocks, confirming the previous studies in rock cutting and mechanical excavation. Therefore, it was recommended to employ easy-to-use index tests of NCB cone indenter and Shore scleroscope in the estimation of laboratory SE of sandstones ranging from very low to high strengths in the absence of a rock cutting rig to measure it until the easy-to-use universal measures of the rock brittleness and especially the rock fracture toughness, being an intrinsic rock property, are developed.

Jan 1, 2006

The paper discusses some theoretical aspects of Gy's sampling theory and provides reasons as to why it has found limited use in the mining industry, particularly for ores with low concentrations of values such as gold. These types of ores are referred to as low grade ores in the paper. It is shown that the misuse of the a priori liberation factor proposed by Gy is the main reason for the implementation limitation of Gy's model for low-grade ores. In addition, results of a case study done at the Gencor Geostatistics Department based On the new implementation of Gy's theory are provided.

Jan 1, 1996

By L. A. Vermeulen, C. P. Campbell, D. D. Howat

The production 01material liner than 75 µm in a number of open-circuit mills was investigated. The mils ranged from laboratory rod and ball mils treating a variety 01 ores to large industrial rod mils treating gold and copper ores. It was shown that the dependence on feed rate 01 the production 01 material liner than 751J.1T1 can be accurately described by a simple formula that was derived in previous work. In some 01 the systems reviewed, it proved possible to assess the feed rate 01 ore to the mil at which the rate 01 production 01 material finer than 75 µm can be maximized.

Jan 1, 1991

By Y. Guglielmi, V. Merrien-Soukatchoff, I. Kadiri

ABSTRACT: Hydraulic experiments have been conducted since 1997 within a small fractured calcareous rock mass in southeastern France, at a site called Coaraze. On this reduced-scale site closing a floodgate located on a downstream spring produces repeated hydraulic loadings. Simultaneous measurements of normal deformations and pressure in several joints have provided a better understanding of the hydromechanical behaviour of such a fractured rock mass. The present paper first describes both the site and conceptual interpretation of the measurements performed. We showed that accurate measurement reproduction requires incorporating certain features: a variable normal joint stiffness, the joint vicinity (through introducing a Z coefficient), and the initial stress state. The paper then develops an original analytical interpretation of the coupled pressure-displacement measurements carried out, which reveal the high level of measurement suitability to the non-linear behaviours examined. 2D modelling, using the discontinuous code (UDEC) was used to proceed with the calibration step. KEY WORDS: In situ test, methodology, hydromechanics, modelling, non linear behaviour ZUSAMMENFASSUNG : Hydromechanische Experimente werden seit 1997 in einer kleinen Kalksteinmasse, das sich im Südosten von Frankreich befindet durchgeführt. In diesem kleinen Standort, werden wiederholte Wasserdruck Erhöhungen durch das Schliessen eines Hahnes produziert. Gleichzeitiger Druck und normale Verformung Meßungen in mehreren Fugen haben erlaubt, das hydromechanische Verhalten einer solche gebrochene Felsenmasse besser zu verstehen. Der Artikel beschreibt zuerst den Standort und stellt die begrifflichen Interpretationen der Meßungen vor. Um die Meßungen gut zu reproduzieren ist es wesentlich, bestimmte Faktoren wie die veränderliche normale Steifheit der Fugen, die Nachbarschaft der Fugen (über einen Z-Koeffizient) und der Spannungstand zu berücksichtigen. Der Artikel erklärt die originale Methode für die Druck- und Verformungs-Meßungen Interpretation und zeigt die gute Korrelation der Meßungen mit dem nicht-linearen angenommen Verhaltens der Fugen. Die numerische 2D-Modellierung mit dem UDEC Software ist für die Verkeilung der Faktoren gebraucht worden. SCHLÜSSELWÖRTER: In-situ-test, Methodologie, Hydromechanik, Numerische Modellierung, nicht-lineares Verhalten RESUME : Des expérimentations hydromécaniques sont conduites depuis 1997 dans un petit massif calcaire fracturé situé dans le sud de la France. Dans ce site de taille réduite des mises en charge répétées sont produites par la fermeture d'une vanne située à l'aval du site. Des mesures simultanées de déformation normale et de pression dans plusieurs joints ont permis de mieux appréhender le comportement d'un tel massif fracturé. L'article décrit dans un premier temps le site et présente les interprétations conceptuelles des mesures. Pour bien reproduire les mesures, Il est essentiel de prendre en compte certains facteurs tels que la raideur normale variable du joint, le voisinage du joint (par l'intermédiaire d'un coefficient Z), l'état de contrainte initial. L'article précise la méthode originale d'interprétation des mesures pression-déplacements qui montre la bonne adéquation aux lois de comportement non linéaire proposées. La modélisation 2D, à l'aide d'un code discontinu (UDEC) a été employée pour le calage des facteurs. MOTS-CLEFS : In-situ, méthodologie, hydromécanique, modélisation, comportement non linéaire

Jan 1, 2003

By R. S. Francis

There are no manuals or handbooks for budding mill superintendents or process plant managers. Most who obtain this level of responsibility have gained their training from watching the good and bad of their predecessors and the successful ones have themselves graduated from the school of hard knocks. This paper attempts to provide some helpful guidelines and direction for those who aspire to better manage a mineral processing facility. The authors have 20 years combined experience in senior management roles at nine different mineral processing operations in Australia and overseas, covering gold, base metals and mineral sands. This summary of tips and pitfalls will hopefully benefit future leaders in mineral processing and metallurgy.

Jan 1, 2007

By T. Lindstad, V. Myrvågnes

In the production of high silicon alloys, carbonaceous materials like coal, coke, charcoal and woodchips are utilized as reducing agents. Primarily based on historical prices of charcoal compared to fossil reduction materials, the Norwegian Ferroalloy Industry has mostly been using coal and coke (char) as carbon source. The most important role of the carbonaceous material is to react with the SiO gas to produce SiC. The ability of the reduction materials to bind SiO gas can be measured and the value is recognised as the reactivity of the carbon source. This reactivity is one of the most important parameters in the smelting process in order to obtain a high yield of metal. The reactivity of the carbon materials is directly correlated to the material properties. It is known that the rank of the coal influences the SiO reactivity where low rank is beneficial. Coals of the same rank have however proven to have varying reactivity. In order to investigate how the micro-constituents of coal influence the reactivity towards SiO gas, three single seam unwashed coals of different origin which fulfil the requirements of the Norwegian Ferroalloy producers have been chosen. As the structure in the carbonized product is a function of petrographic constitution and carbonization parameters, the coals have been separated into different density fractions. The various density fractions of the same coals proved to have significantly different petrographic composition. The coals were carbonized according to a procedure simulating the conditions the coals experience when charged to an industrial furnace. Chemical-, physical- and petrographical properties of both the coals and the resultant chars have been thoroughly examined and correlated towards the SiO reactivity.

Jan 1, 2007

By G. D. Schena

The issue of evaluating the economic impact of large mineral projects in developing countries was studied by the use of econometric models. The evaluating system is demonstrated by its application to an example from Namibia. Three-dimensional graphics are used to illustrate the procedures leading to an assessment of the economic effects of the mineral development. The analysis allows the assessment of the overall economic consequences of mineral developments where there is a need to incorporate in the evaluation issues that are broader in scope than the pure financial objectives. Sets of technical coefficients are exploited for the development of input-output models of the productive structure of an economy. The models are refined to incorporate country-specific behaviours. The increased flexibility of the enhanced semi-input-output model permits a more confident investigation of the economy wide effects associated with a new project in the mineral sector of a developing country. Synthetic measures of profitability at market and shadow prices are introduced, and the cost/benefit ratio is used to rank mineral projects according to their economic profitability. The cost is the capital mobilized for the development of the project and for increasing the productive capacity of the related satellite industries. The benefits are identified with the economy-wide increase in value added induced by the project. 80th costs and benefits are initially valued at market prices. Their ratio is likely to be an index of economic profitability superior to measures that concentrate exclusively on the benefit side of projects. To allow for market distortions, the concept of shadow prices is introduced, and accordingly project-related costs and benefits are re-evaluated. A new cost/benefit ratio at shadow prices is recalculated, which is more meaningful to the policy-maker than decision-making based on socio-economic issues.

Jan 1, 1993